In November 2015, the Minister for Trade and Industry (Trade) has extended the Competition (Block Exemption for Liner Shipping Agreements) Order (“BEO”) for another five years until 31 December 2020.

The BEO exempts liner shipping agreements (“LSAs”) from the prohibition against anti-competitive agreements under the Competition Act, provided certain conditions and obligations are fulfilled. Antitrust exemptions for LSAs generally remain the regulatory norm worldwide, and transhipment makes up a very large proportion of Singapore’s container port volumes. CCS has assessed that the connectivity of liner shipping services available in Singapore generates considerable benefits to Singapore, including providing a higher degree of connectivity and choice for Singapore's importers and exporters. Agreements between liners to share vessel space increase the utilisation of space, enable more frequent services, and may enhance competition with larger liners.